The amount that SaaS companies spend on marketing activities can vary widely depending on various factors such as the size of the company, the target audience, the stage of growth, and the marketing strategies used.
According to a survey conducted by OpenView Partners, SaaS companies typically spend around 11-12% of their revenue on marketing. However, this percentage can be higher for early-stage startups that are trying to establish their brand and attract customers.
Moreover, larger and more established SaaS companies may spend a smaller percentage of their revenue on marketing but still have a larger overall marketing budget due to their larger revenue base. For example, Salesforce, a leading SaaS company, spends around $5.5 billion on sales and marketing each year.
It’s important to note that there is no fixed or standard amount that SaaS companies should spend on marketing. The ideal marketing budget will depend on the specific needs and goals of the company, as well as the effectiveness of the marketing strategies used.